MIRA INFORM REPORT

Report Date :

24.01.2007

IDENTIFICATION DETAILS

Name :	R S ISPAT PRIVATE LIMITED
Registered Office :	502, Mukti Chambers, 4, Clive Row, Kolkata – 700001, West Bengal, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	14.12.1994
Com. Reg. No.:	16-23511
CIN No.: [Company Identification No.]	U27109WB1994PTC066539
TAN No.: [Tax Deduction & Collection Account No.]	CALR04466A
PAN No.: [Permanent Account No.]	AABCR1890D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of steel related products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD32500
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	502, Mukti Chambers, 4, Clive Row, Kolkata – 700001, West Bengal, India
Administrative Office:	B-407, City Centre, Salt LakeCity, Sector-1, Kolkata – 700064
Tel. No. :	91-33-23584494

DIRECTORS

Name :	Mr Radheshyam Agarwal
Designation :	Directors
Address :	4, Black Burn Lane, Kolkata - 700012
Name :	Mr Rakesh Agarwal
Designation :	Director
Address :	4, Black Burn Lane, Kolkata - 700012
Date of Appointment :	Ms Manju Devi Agarwal
Designation :	Director
Address :	4, Black Burn Lane, Kolkata - 700012

BUSINESS DETAILS

Line of Business :	Manufacturer of steel related products
Products :	Non-Alloy Steel Waste of scraps

GENERAL INFORMATION

Bankers :

State Bank of India, Industrial Finance Branch 11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India

Banking Relations :	Satisfactory
Auditors :	Saidi Rajiv and Associates Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
800,000	Equity Shares	Rs 10/- each	Rs 8.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
752800	Equity Shares	Rs 10/- each	Rs 7.528 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	7.528	7.528
2] Share Application Money	0.000	0.000
3] Reserves & Surplus	0.978	0.175
4] (Accumulated Losses)	0.000	0.000
NETWORTH	8.506	7.703
LOAN FUNDS
1] Secured Loans	10.219	5.545
2] Unsecured Loans	1.108	2.285
TOTAL BORROWING	11.327	7.830
DEFERRED TAX LIABILITIES	0.710	0.269
TOTAL	20.543	15.802
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	7.468	8.588
Capital work-in-progress	0.000	0.000
INVESTMENT	0.000	0.000
DEFERREX TAX ASSETS	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	3.953	6.590
Sundry Debtors	16.272	14.944
Cash & Bank Balances	6.556	2.526
Other Current Assets	0.000	0.000
Loans & Advances	2.712	2.947
Total Current Assets	29.493	27.007
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities and Provisions	16.478	19.866
Total Current Liabilities	16.478	19.866
Net Current Assets	13.015	7.141
MISCELLANEOUS EXPENSES	0.061	0.073
TOTAL	20.544	15.802

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	298.927	284.707
Profit/(Loss) Before Tax	1.349	1.133
Provision for Taxation	0.547	0.553
Profit/(Loss) After Tax	0.802	0.580
Total Expenditure	297.578	283.573

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004
PAT / Total Income	0.26	0.20
Net Profit Margin(PBT/Sales)	0.45	0.39
Return on Total Assets(PBT/Total Assets}	3.64	3.18
Return on Investment (ROI)(PBT/Networth)	0.15	0.14
Debt Equity Ratio(Total Liability/Networth)	3.26	3.50
Current Ratio(Current Asset/Current Liability)	1.78	1.35

LOCAL AGENCY FURTHER INFORMATION

Name of the company

R S ISPAT PRIVATE LIMITED

1) Date and description of instrument creating the change

Agreement of Hypothecation of Plant and Machinery, Furniture and Fixtures, Stock in Trade, Book Debts and Vehicles created on 09.03.2006

2) Amount secured by the charge/amount owing on the securities of charge

Rs 429.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Plant and Machinery, Furniture and Fixtures, Stock in Trade, Book Debts and Vehicles

4) Gist of the terms and conditions and extent and operation of the charge.

Nature of facility	Limit	Rate of Interest
Cash Credit	Rs 78.100 Millions	0.75% above SBAR minimum 11% p.a. with monthly rests.
Stand by line of credit	Rs 14.500 Millions	1.75% above SBAR minimum 12% p.a. with monthly rests.
Term Loan-I	Rs 7.600 Millions	2.35% above SBAR minimum 12.60% p.a. with monthly rests.
Term Loan –II	Rs 78.800 Millions	1.10% above SBAR minimum 11.35% p.a. with monthly rests.
Letter of credit (Inland)	Rs 50.000 Millions
Letter of credit (Import)	Rs 200.000 Millions
Overall Limit	Rs 429.000 Million

Margin – 25% of raw materials, finished goods, letter of credit on account of power i.e. on L of WBSFB and 105 for raw materials, 30% of consumables and book debts / receivables (retention period 90 days)

The Term loan – I of rs 7.600 Millions is repayable in quarterly instalments of rs 0.775 Millions each and last two quarters @ rs 0.800 Millions till the liquidation of loan (commenced from December 2005)

The term Loan – II of rs 78.800 Millions is repayable in 8 quarterly instalments (commenced from December 2005 out of which the first 8 quarterly instalments of rs 2.814 Millions each followed by 10 quarterly instalments of rs 5.629 millions each.)

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Industrial Finance Branch

11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India

6) Date and brief description of instrument modifying the charge

09.03.2006

Name of the company	R S ISPAT PRIVATE LIMITED
Presented By	State Bank of India, Industrial Finance Branch 11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India
1) Date and description of instrument creating the change	Agreement of hypothecation of goods and assets dated 12.09.1995. As modified on 12.12.1995 (Equitable Mortgage), 07.10.1996, 13.07.1999, 16.07.199 (Equitable Mortgage), 07.03.2001, 15.11.2002, 12.04.2004 and 12.07.2004 (Equitable Mortgage) for Rs 111.900 Millions
2) Amount secured by the charge/amount owing on the securities of charge	Rs 39.600 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The borrower here by hypothecates all goods, movables and other assets such as book-debts outstanding moneys, receivables, claims, bills, invoices, documents, contracts, engagements, securities, investment and right and all movable plant and machinery and other fixed assets, both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	The borrower hereby hypothecates all goods, movables and other assets present and future including documents of titile to goods and other assets such as book-debts, outstanding moneys, receivables, claims, bills, invoices documents, contracts, engagements, securities, investment and right and all movable plant and machinery and other fixed assets both present and future
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial Finance Branch 11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India
6) Date and brief description of instrument modifying the charge	No instrument was executed but previous mortgages were extended by constructive delivery and deposit of title deeds on 13.01.2005 (Memorandum of deposit for creation of further charge for term loan / overall limit where the initial charge is created by way of mortgage by deposit of title deeds in the office of the State Bank of India, Industrial Finance Branch 11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India )
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By this modification the overall limit remains same at rs 248.900 Millions but the benefit to the state bank of India of the mortgage by deposit of title deeds relating to several landed properties of the borrower created on 12.12.2004 and further extended on 07.03.2001, 15.11.2002 and 12.07.2004 with State Bank of India, Industrial Finance Branch as security for the payment and discharge of all indebtness and liabilities of the borrower to the bank inclusive of all interest discount commission charges and costs and expenses payable to or incurred by the banks in relation thereto and for all other indebtness and liabilities of the borrower to the banks shall continue t remain mortgage to the banks as security for and charge with repayment to the banks of the sum of rs 248.900 Millions or such part thereof as might be due or owing to the banks from the borrower to the banks and also as security for repayment liabilities of the borrower to the banks with ior relative interest discount commission costs charges and expenses in relation thereto payable to or incurred by the banks as if such extended security as aforesaid had been originally created in favour of the banks at the time of the deposits of the title deed on 12.12.1995 to the intent that the said title deeds shall continue and remain deposited with the banks and shall not be re-delivered or released until the whole of monies indebtness and liabilities of the borrower intended to be secured by the original deposit of the said title deeds on 12.12.1995 and Cash Credit, Letter of credit and Term Loan facility now extended to or granted for Rs 248.900 Millions and also all other indebtness and liabilities of the borrower to the banks shall have paid and satisfied in full.

Name of the company

R S ISPAT PRIVATE LIMITED

Presented By

THE COMPANY

1) Date and description of instrument creating the change

Memorandum of Deposit for creation of charge for overall limit dated 26.10.2005

(in the office of State Bank of India, Industrial Finance Branch , 11, Dr. U N Brahmachari Street, Kolkata, West Bengal – 700017, India)

2) Amount secured by the charge/amount owing on the securities of charge

Overall Limit : Rs 248.900 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The scope and benefits of creating mortgage by deposit of title deeds of the company as specified in the schedule below is to create mortgage by deposit of title deeds under section 79 of the transfer of property act, 1882 and within the meaning of section 58(f) of the said act to secure repayment of the sum of rs 248.900 Million granted by the bank to the company together with interest, commission discount, costs and charges thereon.

Schedule of properties

Name of village : Tumidhi

P. H. No : 162,164 Sector G

Name of Tehsil : Gharghoda

Name of District : Raigarh

Name of industrial Area : JIndal Industrial Bank

Sr No	Name of village	Khasra No.	Area (Ha)
1	Tumidhi	308(p)	0.400
2	Tumidhi	309(p)	0.400
3	Punjipathra	221(p)	0.400
4	Punjipathra	222(p)	0.800
5	Punjipathra	224(p)	0.160
		Total	2.160

Surrounded By:

On North : Road

On South : Sub Station

On East : Road

On West : Plot of Shree Consultant and Mamta Electrocasting

4) Gist of the terms and conditions and extent and operation of the charge.

The borrower shall not do or allow anything which may prejudice the security

Interest, commission, discount, costs and charges as may be current from time to time for the credit facilities according to banking norms and RBI guidelines

5) Name and Address and description of the person entitled to the charge.

N.A.

6) Date and brief description of instrument modifying the charge

N.A.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.21
UK Pound	1	Rs.87.48
Euro	1	Rs.57.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions